And so it begins for Lemonade

Lemonade_budget

I was on here a long long time ago, and stupidly thought I knew everything so I stopped logging in and in turn stopped being accountable and so I've found myself in a little bit of a pickle - at £50k debt kind of pickle. 
Things like a huuuge reduction in salary, writing off my car and me not checking on my accountant closely meant I went from loads of credit cards with 0 balances to 2 loans, most cards heading towards their limit and as I say, owing £50k with almost nothing to show for it. 

With the realisation that salaries are not going back to what they were for contractors, I'm now in a PAYE job I love with a stable income and a DMP with Stepchange to my name. I made my first payment towards my debt this month and I'm looking at being debt free in 2026. 

I've done things back to front in that I should have stopped paying all creditors, wait for them to default, then go on a DMP but it's started now and most creditors have been fine. Just one took it upon themselves to not only hound me but to phone my elderly parents daily but it was rather empowering to phone them and give them what for. I might be skint but I'm trying my hardest to do something about it. I managed to stick £500 in an emergency fund, and typical my shower blew up so I've had to use some but it didn't go on a credit card and I went for function over style. 

I've kept one credit card with a zero balance because I have to travel a bit with work and occasionally need a card to put hotels etc on before paying it off when expenses come through.

So here's my first step towards being accountable for my debt, but being back in control. 

redofromstart

Just dropping in to say welcome back, and good luck with your plans.

Lemonade_budget

Thank you so much!

When the first payment went to the DMP the debt went from £50k to £49k so I think it's a positive mental thing to see it dropping already. Aiming for an NSD tomorrow, unless the plumber comes back to do the last bit of work in the bathroom. So good to know the money is there, albeit I've next to no emergency fund until payday. 
It's just me and the dog so I'll probably ramble a lot on here!

redofromstart

I found that 'rambling' on here, and reading/posting on other diaries, helped to keep me on track.  

Lemonade_budget

Happy Monday all. I haven't managed as many NSDs this week as I'd hoped but the shower is sorted and no longer dangerous so that's a bonus. 

I raised a complaint with one of my creditors who were calling my parents' house incessantly looking for me - I've not lived there for a very long time. I'm not sure if anything will come of it but it made me feel better getting the calls to stop. 

I also did an online shop for today which only had a couple of items unavailable so that'll do me for the week. I don't know if it's just me that's struggling to do a full shop in one supermarket - my downfall for over spending is going to multiple stores, so I'm trying online for a while.

I had an email to say that Next have put a stop on my credit account so I think I'll close it completely. Should I expect all other accounts with a zero balance to be closed?  

Hope you all have a lovely week ahead 

Lemonade_budget

Hey just a quick check in. Updated my budget - £33 cashback from my car insurance appeared in my TCB account this morning which was unexpected but lovely.

I checked my accounts and one creditor is still adding late payment fees and interest despite agreeing to my DMP through Stepchange. It just means that the payment I'm making is being swallowed by interest and fees. It's beautiful here today so all the washing is out on the line, always makes me feel better seeing the better weather 

redofromstart

That's good news on the TCB payout at least.

I am with you on hurrah for sunshine

Lemonade_budget

Happy Monday all. I spoke to the creditor who's applying interest and late payment fees and they've refunded all interest and fees and stopped all future interest/fees so that's something really positive. 

My folks took the dog so I could have an early night, lie in and get some peace to catch up on housework so feeling really positive today and the food shopping is being delivered today too so I can get that put away without a snotty nose checking everything. 
Also using my nectar points for a new microwave, replacing the one that's ready to go kaput. 

I'm planning on running down the freezer over the next couple of weeks as I've been too good at freezing leftovers and not so good at using them up! Time for some dubious dinners but it'll be worth it when it's empty and had a good clean. 

Have a great week everyone x

leftatthetrafficlights

Thought I'd pop in and say well done on tackling the debt and wish you luck!! 

I also found myself in a very large level of debt a long time ago due to living on credit and spending up to our enormous credit limits as we had good jobs with large salaries. Then illness hit and we had a massive drop in income which crippled us financially so I know how you must feel about it. 

It's good that you have a stable income now and are taking control of things - I'll subscribe and cheer you on! 😁

Lemonade_budget

Hello, happy Monday everyone. 2nd payment to the DMP, got the fees and interest on one account refunded so it's looking a bit less severe. 

I got £65 cashback paid out that I wasn't expecting til later August, and a random refund from the car dealer I bought my car from so it's gone straight to the EF to build that back up. 

Found the dog food for sale in B&M at £10 cheaper than my usual place. I always have to stay focused when I go in there so I took my mum to be on the safe side!

Everything has been paid for the month so it's just food and petrol left to pay and I'm sitting with just over £200 in the bank so I'm feeling a lot more in control than I usually would. I'm hoping today is an NSD since tomorrow I need to pay for doggy day care. 

Have a great week all x

Lemonade_budget

The complaint I raised about the number of calls chasing me for payment on my CC has been resolved and they've apologised saying it should never have happened. They've offered £150 as compensation so it's going straight into my EF which is now sitting at £964. I'm so pleased that I actually have money in the bank!

I took some faulty leggings back to the supermarket and spent £7 on some reduced goodies for me and the dog so although it was a spend I didn't need, it wasn't as bad as it could have been